Should I Elect S-Corp Status? (2026)

Four quick questions to determine whether an S-Corp election (Form 2553) makes sense for your business. Get a recommendation, a rough savings estimate, and a pre-filled link to the detailed LLC vs S-Corp Analyzer.

Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (deductions, credits, filing status nuances, state-specific adjustments). Always seek financial or tax advice from a qualified CPA, Enrolled Agent, or tax attorney, or contact the IRS. Read our editorial scope →

What's your estimated annual net business income?

Before owner compensation and self-employment tax.

Under $50,000

$50,000 – $100,000

$100,000 – $200,000

Over $200,000

Tax year 2026 · USD · OBBBA permanent law

Formula: Decision tree uses income bracket midpoint + 40% heuristic salary + full LLC vs S-Corp engine for savings estimate.

Assumptions

Income bracket midpoints: <$50k uses $40k; $50-100k uses $75k; $100-200k uses $150k; $200k+ uses $275k.
Heuristic salary = max($30k, 40% of net income, net income − $10k). Actual reasonable comp depends on role + industry.
Admin costs assumed at $2,400/year (payroll service + 1120-S prep). State minimums (CA $800, MA $456, etc.) added automatically.
Savings estimate uses the same engine as the detailed analyzer — numbers should match when you click through.

Estimates only — not tax advice. Brackets, deductions and thresholds reflect the locked 2026 federal configuration. State amounts use each state's posted 2026 top-line rules and may differ from a full state-form computation. Always confirm complex situations with a qualified CPA, EA, or tax attorney.